It is becoming much harder to compete in the worldwide marketplace that we all dwell in. Whether you are making hair dryers or widgets, there is somebody out there trying to build them less expensively and faster than you. But the question is if they are producing a better part? For some people, it doesn’t matter, cheaper is better even if the part doesn’t last as long. It is strange and regrettable, but cheaper has become the motto and the word of choice for many people and companies. Yes, cheaper is better, but cheaper doesn’t necessarily work out for the best. So the object is to produce a first-rate, high value item and to make it of high worth to your buyers. The makers of the product do not determine what they makes’ worth; the customer does. What is the buyer willing to pay for your part and how much of a demand for your part is there? There are different ways to increase your revenue for your product.
You can always increase the price and pass it off to the buyer. But there is a better way, a longer term method that can boost profits and keep your business operating lean and efficiently. It all begins with removing unnecessary waste in all parts of your organization. Waste comes inlots of forms and it costs every organization more revenue than they would care to confess. Waste is when workers are just hanging around, but that doesn’t mean that there aren’t orders to be built. It mightsimply mean that they are waiting for parts to be finished in the painting department or it might mean that they are waiting for parts from a supplier. These are method issues that can directly affect the end product and how many you can make. When workers are loafing around, inactive and waiting for the work to come to their area, they are not productive. They are under used and are in effect simply wasting cash and time. It is the same when you have machines standing idle. What is the point of having a costly mechanized machine if it is not in use for hours a day? Would it be more cost effective to do the job by hand, sell the machine and purchase a piece of equipment that will be more industrious? What about the room that the machine is filling, could another work spot be put there and more labor actually be completed without the robot? You can’t say that you don’t want to get rid of tools because you might want it. If you are not making use of it or it is obsolete, then it is taking up valuable space and not contributing to the growth and profit of theorganization. It can be tricky to admit that getting that machine was a bad idea, but if it does not and doesn’t assit build the company, then it is time to move on and discover something that does. It is named adapting and moving forward.